THE Cebu Provincial Board (PB)has approved an ordinance of the city of Bogo restricting lending firms, usurers and individuals from accepting cash cards of the government’s Pantawid Pamilyang Pilipino Program (4Ps) program and other documents as collateral or security for a loan.
Reviewed by the PB committee on laws chaired by Board Member Raul Bacaltos, the ordinance authored by City Councilor Ethel Gulane was passed on September 13 and approved by Mayor Carlo Jose Martinez on September 26.
The PB took into account the policy of the 4Ps National Advisory Committee (NAC), an inter-agency and highest policy-making body that provides policy directions and guidance on matters pertinent to the 4Ps implementation.
“In accordance to NAC Resolution 20, series of 2014, cash-card pawning is a punishable misdemeanor,” read the committee report approved by the PB last week.
The city of Bogo is an active implementer of 4Ps and Modified Conditional Cash Transfer (MCCT) Program, servicing 2,430 and 3,046 family beneficiaries enrolled in each program, respectively.
Numerous complaints have been reported on cash-card pawning whereby such card or other 4Ps documents are used as loan collaterals.
The 4Ps NAC maintains the card received by the beneficiaries are owned by the Philippine government and does not authorize the grantees to pawn or use it as loan collateral for any transaction or undertaking.
NAC resolution penalizes only violative acts committed by the beneficiaries.
“The Sangguniang Panlungsod sees it fit to impose sanctions on reciprocal acts committed by financial institutions, individuals, loan sharks, lending companies and the like who accept the 4Ps cash card as a loan collateral,” read the city council resolution embodying the ordinance.
A minimum fine of P2,000 and a maximum of P5,000 shall be imposed against individual lenders and lending companies violating the ordinance, while the beneficiaries shall be referred to the City Social Welfare and Development Office and be dealt with in accordance to NAC resolution.